Question

My teacher barely speaks English so your guess is as good as mine what he means. Also, this is all of the data that he gave the class and I have nothing else to share. Please don't tell me the information is misleading and or filled with typos, etc. I copied and paste what is being asked of us and that is why I am here, to get help. Please use the information that is provided to either help solve it or show me how and where the math won't work. Thank you.

Firm 3302 (name of firm)

2020. Dividends =3.23. risk free rate= 5.3%. market return = 4%. beta = 1.12

2020 Dividends =3.65. risk free rate= 6.3% market return =3.5% beta =1.22

2022. Dividends = 4.01 risk free rate= 5.2%   market return = 4.2%. beta =1.02

2023 Dividends = 3.58 risk free rate= 4.2% market return =3% market return =1.32

2024 Dividends =2.01 risk free rate=3.9% market return =2% market return =1.25

  This is our firm which is called 3302-firm expected dividend distribution table, we have many professional backups. Hence, based on us professional backups forecast, we 100% know that our dividend growth rate will be increasing in same rate after the last day of 2024. As we all know, between 2024 and infinite, we also learn that the ROE is 4% and reinvestment rate is 10%. The risk-free rate constantly equal to 4% and the market return constantly equals to 5%. Beta = 1.1. These number won’t change in the future. As we all know, between 2020 and 2024, we also learn that the ROE is 10.2% and reinvestment rate is 35%. All the numbers are listed on the table above. Question: Please find out 3302-firm’s intrinsic value today.

Answer 1

This answer assumes today means you're referring to 2019. Also there are two dividend number for 2020, so I'm assuming the second one is 2021.

Intrinsic value of a company using Dividend Discount Model is present value of all cash flows arising from dividends. Discount all dividend cash flows arising in different years with their respective cost of capital. Cost of capital in this example can be calculated using Capital Asset Pricing Model(CAPM) which is Risk free rate+ beta*Risk Premium. Risk premium is the difference in Market return and Risk Free Rate.

After Calculating CAPM you can discount the dividends on yearly basis using the formula

Dividend/(1+CAPM)^No. of years away you're from Today.

example for 2022- 3 years away from today. so 4.01/(1+CAPM)^3

After 2024, you will need to get a growth rate at which you will assume your dividends will grow till infinity.

Growth Rate = Reinvestment rate * ROE

Terminal Value of Dividend = Dividend of 2024(2.01)/(ROE-Growth Rate) and then take this value to today by discounting i.e. calculate PV

After this, add all the values from 2020 to 2024 and also the terminal value.

Now your question has few inherent problems, such as Market Return is less than Risk Free Rate which is not possible. Maybe you can tell your teacher about this and he/she will change the problem. As if Risk Free Rates are higher than market return why would a sane person invest in the markets? Risk premium in such a case would be negative as Risk premium is Market Return - Risk Free Rate, this is not allowed in Capital Asset Pricing Model.